Sony Corporation has regrouped in recent years by narrowing its consumer range and concentrating on its most successful businesses.
For years there was speculation that Disney might buy Sony Pictures, originally for Spider-Man, but this eventually became part of a separate licensing deal.
Fast forward to 2024 and, according to some reports, Sony Group is closer to becoming the world’s most valuable entertainment company with a sell-off less likely than ever. It seems Sony is laser focussed on its pictures, games and music arms.
Sony’s financial position shows the story. A report by Nikkei Asia says Sony Group held US$26.4 billion in goodwill and other intangible assets as at September 2023, which is about 2.4 times the amount 10 years earlier. Nikkei Asia reports that analysts project a 15 percent increase in group operating profit next year and 10 percent the year after.
According to Statista, Sony generated US$10.35bn from its music business in fiscal year 2023, up from US$9.15. That’s a huge turnaround from the years leading up to 2014, where annual sales and operating revenue for its music segment dropped down to US$4.45billion.
If anything is retreating, it’s the company’s involvement in consumer electronics, with Sony rumoured to be considering exiting the smart TV business in some markets.
However Sony is off to a flying start in 2024 with, according to reports, the company flagging new Mini LED sets instead of high end OLED TVs. One new feature, according to whathifi.com, is the set’s ability to change the picture settings to those designated by content creators. Your TV settings fall into the hands of filmmakers.
It’s not all good news for Sony. Last year’s epic court case gave the green light to Microsoft’s acquisition of Fortnite game developer Activation Blizzard, which has taken some of the wind out of its PlayStation business – although there is a 10-year deal for the Call of Duty franchise to be available on PlayStation consoles. But that doesn’t include the loss Sony will endure in future from the development of Activation Blizzard games now being in Microsoft’s hands.
Sony’s PlayStation business also has attracted the ire of regulators, with France’s Autorité de la concurrence fining it 13.5 million Euros (A$22m) for implementing console features that prevented third-party games controllers operating properly, an action deemed an abuse of its dominant market position.
